TYPES OF COMPANY

Here is a brief summary of the types of small businesses. An accountant will be able to give you advice as to which will suit your particular needs.

SOLE TRADER

Set up very easily, just inform the inland revenue. Gives you complete control

You are fully responsible for its success or failure.

If the business fails then you would be bankrupt and all your assets including your home and car, could be seized to pay off outstanding debts.

PARTNERSHIP

Made up of two or more people. Marries together the range of each persons talents.

Shares both the work load and the profits

Each partner is liable for the whole amount of any debts incurred by the other partners

Note;

Do not leave things to chance, get a partnership agreement drawn up by a solicitor, regardless of who the partner is.

LIMITED COMPANY

Can be bought “off the shelf”

Can be set up with or without professional advice

Needs at least two share holders

You would become a company director

The liability for debts is limited to the assets of the company should it get into financial difficulties and go into liquidation.

FRANCHISES

Increasing in popularity.

In return for investment you trade under the Image and popularity of an household name.

Training and advice is usually included.

The freedom of running the business how you choose is lost.